Tag Archive for: rates

Why Rescission Periods (the right to cancel)?

What is a rescission period and why do they exist in the mortgage industry? A rescission period is basically a “cooling off” period in place after homeowners sign loan papers refinancing an existing mortgage. There can be multiple reasons why someone would want to refinance, and most often it’s to get a lower rate. But […]

The Connection Between Oil Prices and Mortgage Rates

You’re surely been following the news and hearing or reading about the price of oil lately. If you haven’t, well, we’re at levels we haven’t seen in decades. Low levels. Currently, the price for a barrel of oil hovers around $30 with some even predicting prices to fall a bit more over time. Quickly compare […]

Can I Really Skip Two Mortgage Payments by Refinancing

You may have heard this before. That when you refinance you get to skip two mortgage payments. In fact, it’s not uncommon to hear a lender actually promote this notion. If so, I think it’s a bit misleading. There’s no such thing as skipping mortgage payments during a refinance, the payments are made just in […]

Why Wholesale Lending is So Important

If you’re not familiar with the term “wholesale lending” in the mortgage industry, you’re not alone. If you have heard the term, it’s easy to misinterpret its meaning. “Wholesale” might imply universal or overall but that’s not the definition. Wholesale lending plays a crucial part in the mortgage business and I’ll explain why. What is […]

What’s a Two-Step Mortgage?

Here’s another loan program you might not have heard of before but could be an attractive option for you. It’s referred to by lenders as a “two-step” mortgage. It’s so called because the interest rate on the mortgage changes once at a predetermined point in the future. There’s the initial rate, or the first step, […]

Federal Funds Rate: The Decision is In

Just in case you missed it, the Federal Open Market Committee, or FOMC, concluded their most recent round of meetings on Wednesday, July 31, which affects the Federal Funds Rate (fed funds rate). The FOMC meets every six weeks to discuss monetary policy, current and future economic conditions and the cost of funds. While the […]